Paper money is nothing new in the land of China, in the Song Dynasty has begun to be used on a large scale, and in the Ming Dynasty, it was widely circulated and used.

However, the traditional feudal dynasty thought that its own defects, resulting in insufficient credit of paper money, especially the Ming Dynasty, in addition to the early Ming Dynasty its paper money was still more sufficient, and so on in the middle and later periods, the credit of paper money is basically lower and lower.

Among the many reasons for the collapse of paper money, the most important point is that the authorities do not recognize it, and when the paper money is not even accepted by the government, it is basically not expected that the public can recognize the value of paper money.

The bad negative impact left by paper money over the years has always been an obstacle to the issuance of paper money in the Tang Empire.

For this reason, when the Tang Empire began to implement the paper money plan in the early days, it adopted the model of saving the country with a curve, that is, the official did not directly issue paper money, but the model of issuing silver bills by the Royal Bank should replace the issuance of paper money.

One of the main reasons is that in the minds of the people, the credit of the government is too poor.

It's not even as good as a traditional silver ticket issued by a silver number!

The definition of a silver note issued by the Royal Bank is actually the traditional model of a silver bank, and its credit is endorsed by the Royal Bank, not by the state.

The essence of the silver note issued by the Royal Bank is not a legally recognized legal tender banknote, but a kind of deposit note issued by the Royal Bank alone!

The people of the Royal Bank deposit real money into the Royal Bank, and then divide it into many kinds according to their personal wishes, one is the registered savings, this kind of deposit is to open a bank account for you, the money is still in the account, and you can withdraw it at any time with the passbook.

In addition, there is a kind of bearer deposit, after depositing money, do not open an account, but directly exchange the bearer deposit notes issued by the Royal Bank, this kind of bearer deposit notes issued by the Royal Bank, is a recognition of the person, as long as you hold this kind of bill, then you can withdraw the corresponding amount of real money from any branch of the Royal Bank.

The bearer deposit bills issued by the Royal Bank are all in a uniform system, and the denomination is also fixed, ranging from a large amount of one hundred taels to fifty taels, ten taels, five taels, one tael, and then to five coins and one coin.

Subsequently, small-denomination bearer deposit bills with face values of 10 yuan, 5 yuan, and 1 yuan were issued.

The above-mentioned bearer deposit bills are also collectively referred to as silver bills!

Because it was backed by the Royal Bank and could be exchanged for real money from the Royal Bank at any time, it was accepted by merchants in the early days and gradually used as a circulating banknote, and then gradually extended to daily circulation.

However, this kind of silver note, after all, is not a currency in the legal sense, it is just a bearer deposit instrument issued by the Royal Bank itself.

In order to promote the use of paper money, the official of the Tang Empire also stipulated that the payment of taxes could be done with bearer deposit notes issued by the Royal Bank.

In fact, there are many kinds of such bills, but bearer silver bills, which are currently only issued by the Royal Bank, and other banks are all banned, but other banks are allowed to use cheques and cashier's checks.

Check, needless to say, is a depositor deposit a certain amount of gold and silver, and then obtain the check book issued by the bank, the owner of the check in the payment, directly fill in the amount, payee, and sign and seal after the payout, the payee takes the check to the bank to withdraw funds, and the bank confirms that it is correct and transfers funds from the depositor's account.

This kind of check payment is specially issued for businessmen, without a certain strength, it is impossible to enjoy the check service, and because it is a registered model, it also ensures the safety of funds, and is welcomed by many businessmen.

The cashier's check, can be regarded as a temporary restriction of the use of large amount of silver checks, before the use of the applicant needs to go to the bank to deposit items, and then obtain a cashier's check, usually this kind of cashier's check is limited, if not withdrawn within the limited half a year, then the cashier's check is directly invalid, the relevant money is directly returned to the applicant's account, this kind of cashier's check, because of the use of pre-deposit, registration, time limit, unconditional payment and other special.

Because cashier's checks are usually used for super-large commercial transactions, the lowest denomination of cashier's checks, the amount of which is 1,000 taels of silver, and there is no upper limit, as long as you dare to pre-deposit, the bank will dare to issue you a cashier's check of the corresponding denomination.

Small and medium-sized denominations, silver bills that can be circulated and transferred for a long time, plus bank checks, plus cashier's checks, these three forms basically constitute the main commercial means of payment in the Tang Empire at present.

Of course, direct bank transfer is also one of the ways.

It can also be seen from this that in fact, all kinds of paper negotiable bills in the Tang Empire have nothing to do with the official, only with the banks in the Tang Empire, and people use silver bills, not because silver bills are legal tender, but because they are deposit bills.

But this situation cannot be sustained forever, because the Tang Empire always has to issue legal tender money, and it cannot be replaced by silver stamps as it is now.

What's more, the only Royal Bank that can issue bearer deposit notes, that is, the silver bills that are now in circulation, is a wholly owned bank of the Royal Assets Division, but in any case, it is still only a commercial bank.

Naturally, it is extremely inappropriate to hand over all the country's currency issuance to a commercial bank.

However, Li Xuan also took into account that people's trust in the Royal Bank is obviously higher than their trust in the government, so it is impossible for him to directly leave the Royal Bank when the new banknotes are issued.

To this end, under the intervention of Li Xuan, the Finance Department and the Royal Bank conducted relevant discussions, and finally decided on the issuance mode of the new banknote!

First of all, in order to issue a new type of currency and better stabilize the domestic finance, the empire will set up a new financial institution under the Ministry of Finance.

That is, the Datang Central Bank!

The bank is not a commercial bank of Datang's existing banks, because the bank does not have any commercial functions, and the central bank's functions are to supervise financial institutions, currency issuance, financial regulation, etc., and it is a serious policy institution.

The bank was responsible for the issuance of coins and banknotes for the Imperial Yuan, and at the same time, it began to stipulate from the legal level that no bank other than the central bank could issue banknotes and coins.

In order to better carry out the banknote issuance business, the central bank took over all the banknote business of the Royal Bank.

At the same time, in order not to cause any turmoil, it is stipulated that newly issued banknotes and coins can be exchanged for bearer deposit notes issued by the Royal Bank in equal amounts unconditionally, and the Royal Bank will not issue new silver notes.

At the same time, in order to stabilize the credit regulations of fiat banknotes, banknotes can still be exchanged for real money in any bank, not only in the Royal Bank, as before, but from all regular banks.

Of course, these banks can also use these banknotes to exchange real money directly from the central bank.

However, in order for major banks to obtain banknotes, they also need to exchange real money from the central bank.

There are many other detailed policies, and all of them have only one purpose, which is to stabilize the credit of new banknotes, and then promote the widespread use of banknotes.

For this reason, the imperial treasury is also very cautious, in the printing and issuance of banknotes, strictly limit the standard of one to one, that is, how much gold and silver will be received, how many banknotes will be issued.

Because to a certain extent, this new type of banknote is actually a bearer deposit note issued by the central bank.

All the measures in the early stage are to protect the credit of banknotes!

Through the issuance of fiat banknotes and fiat coins, a new monetary system of the empire was completely laid, so that the concept of 'yuan' completely replaced the current real money and silver.

Li Xuan hopes to adopt a new monetary policy that will reverse the current monetary chaos and lay the foundation for the full implementation of the gold standard in the future.

Of course, even if the policy has been formulated, according to the relevant plans of the Ministry of Finance, it will take a long time to prepare, it will take time for the Central Bank to be established, and it will take time to take over the banking business of the Royal Bank.

Limited by the current environment, the Ministry of Finance estimates that the issuance of the new currency of the empire will not officially begin until next summer, and it will take at least ten years for the new currency, especially paper money, to truly spread throughout the country.

It's a long and complex project, and it's hard to rush.

For the huge Tang Empire, the implementation of a major policy requires full preparation, experimentation, and a transitional period, and caution is very necessary, otherwise, if the head is hot, large-scale changes will be made, and the empire will be broken.

But this is for a huge empire, and for ordinary companies, especially private companies, it is much faster to make big decisions.

Changzhou Suzhou and other traditional textile businessmen, plus several gentry families jointly established the 'Dayang Textile Company', in cooperation with the marriage committee under the Tang Fusang Affairs Yamen, the introduction of the first batch of Fusang female workers after the work is good, ready to carry out the second cooperation with the marriage committee, ready to introduce a large number of Fusang female workers to work in the Shanghai headquarters textile factory.

Dayang Textile Company, which is a medium-sized textile enterprise, its main business is machine-made fabric, but its products are mainly sold to Fuso, not domestic!

It's not that they don't want to mix in the domestic market, but because the competition in the domestic market is too fierce, led by a number of large textile companies such as Jiangnan Textile Company and Zhili Textile Company, in order to compete for the domestic market.

Dayang Textile Company, a small industry, because of its limited technical capabilities, the quality of its fabrics is also average, and the cost control is not good, so there is no way to compete with those large enterprises at all, and can only go overseas to pan for gold.

And the textile company where Song Marunzi works is this Dayang textile company!